2021-12-31-accounts

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The Order of Friars Minor Charitable Trust

Annual Report and Accounts

31 December 2021

Charity Registration Numbers: 232177 (England and Wales) SC039191 (Scotland)

Reports

Reports
Reference and administrative details of
the charity, its trustees and advisers	1
Trustees’ report	2
Independent auditor’s report	18
Accounts
Statement of financial activities	22
Balance sheet	23
Statement of cash flows	24
Principal accounting policies	25
Notes to the accounts	31

The Order of Friars Minor Charitable Trust

Reference and administrative details of the charity, its trustees and advisers

Trustees	Rev Michael Copps OFM (Chairman)
	Rev Patrick Lonsdale OFM
	Rev Antony Jukes OFM
	Rev Edmund Highton OFM
	Rev Michael O’Grady OFM (resigned 27 July 2022)
	Rev George Smulski OFM (appointed 27 July 2022)
	The trustees are incorporated under the Charities Act 2011
Custos	Rev Michael Copps OFM
Custodial Secretary	Rev Patrick Lonsdale OFM
Provincial Bursar	Rev Michael O’Grady OFM
Principal address	The Franciscan Friary
	557 High Road
	Woodford Green
	Essex
	IG8 0RB
Charity registration numbers	232177 (England and Wales)
	SC039191 (Scotland)
Auditor	Buzzacott LLP
	130 Wood Street
	London
	EC2V 6DL
Solicitors	Stone King LLP
	Upper Borough Court
	Upper Borough Walls
	Bath
	BA1 1RG
Stockbrokers	J M Finn & Co
	4 Coleman Street
	London
	EC2R 5TA
Principal bankers	NatWest Group
	1st Floor 440 Strand
	London
	WC2R 0QS

The Order of Friars Minor Charitable Trust

Trustees’ report 31 December 2021

The trustees present their statutory report together with the accounts of The Order of Friars Minor Charitable Trust for the year ended 31 December 2021.

The accounts have been prepared in accordance with the accounting policies set out on pages 25 to 30 and comply with applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102).

INTRODUCTION

The Order of Friars Minor was founded by St Francis of Assisi in 1209. It has maintained its essential character through the centuries. Friars live in communities, observing the Gospel of Our Lord Jesus Christ, under vows of poverty, celibate chastity and obedience, in accordance with the ‘Rule of 1223’ written by the Founder. The Minister General’s headquarters are in Rome where he is assisted by a General Definitory or Council, governing the Order Worldwide. The British Custody is part of the Order.

CONSTITUTION

The accounts accompanying this report are the accounts of the charitable trust on which the assets of the British Custody are held and through which its finances operate. The charity is governed by a trust deed dated 1 December 1963 as amended by a scheme dated 12 June 1973, and is registered under the Charities Act 2011. Since 2007 the trust has also been registered with the Office of the Scottish Charity Regulator (OSCR).

The trustees of the charity are an incorporated body under the Charities Act 2011.

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES

The principal aims of the charity are the support of charitable purposes connected with the Roman Catholic Religion and the support of the charitable work of the Order generally. This work is described in more detail in the following paragraphs. Although the majority of friaries are situated in England, the charity has one house in Glasgow, Scotland. The objectives described below apply in Scotland with special emphasis on the overseas mission work.

In setting out and planning the activities of the charity, the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.

Pastoral

The Order of Friars Minor in this Custody has four parishes in its care. Most of the friars of the Custody are engaged in pastoral and educational work – supporting and encouraging prayer and worship, administering the sacraments, preaching, teaching, providing spiritual and material sustenance to those in need. In addition, they give retreats and missions to other parishes and to convents. There is an obvious public benefit from these activities, as they are designed to promote harmony and cooperation in the parishes concerned and in the wider community.

The Order of Friars Minor Charitable Trust

Trustees’ report 31 December 2021

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Educational

To be able to provide the pastoral and spiritual support mentioned above, the members of the Custody must have the opportunity to obtain firstly the initial formation needed in the preparation for their ministry and then the further training and formation to equip them to serve the Church and the faithful in a rapidly changing society. The trustees need, therefore, to keep a close eye on the requirements to remain active and fruitful preachers of the Gospel. In addition, the friars take an active interest and play a part in the provision of primary, secondary and tertiary education in the schools of their parishes. These schools have a Catholic ethos and have no restriction with regard to colour, race, or income, thus providing an obvious public benefit.

Overseas missions

The Order of Friars Minor is the largest missionary Order in the Church. This Custody began missionary work in India and South Africa over 60 years ago. Initially they sent men out to those countries to begin the work of serving the people and establishing a Catholic presence there. Over time these missions have grown and now provide their own indigenous friars. With the decline in vocations in this country, the support now takes the form of grants financed by donations from Franciscan parishes and educational assistance to overseas students.

Grant making policy

The bulk of the grants made by the charity usually arise through the restricted funds i.e. the Franciscan Missionary Union (FMU) and Saint Antony’s Bread. In both cases money is deposited with the friars by the faithful to be used in the Franciscan missions and for the relief of poverty. The policy of the charity, therefore, is to use all the money so contributed for the furtherance of those two aims.

In total, grants of approximately £218,000 (2020 – £283,000) have been made during the year both as direct donations from the income of the charity and from disbursement of contributions by the faithful to the FMU and St Antony’s Bread. As usual, the Franciscan Missionary Union made contributions to missionary areas, especially in India and South Africa, for both general support and specific projects amounting to approximately £75,000 during the year (2020 – £179,000). In addition, the charity makes a regular annual donation to about a dozen charities that provide services allied to the Franciscan ethos e.g. Shelter, NSPCC and CAFOD totalling circa £105,000 (2020 - £68,000). More details are given in note 4 to the accounts.

Investment policy

The charity has a portfolio of investments with a market value as at 31 December 2021 of £19,432,468 (2020 - £16,646,590).

The charity has set up a Sick and Retired Reserve to provide assistance to communities with elderly and infirm friars. This reserve is represented by a large part of the charity’s portfolio of stocks and shares, managed under the guidance of a fund manager. The fund managers have been asked by the trustees to keep a prudent balance between gilts and equities and to ensure the risk is spread by investing in a wide range of industrial shares of the larger companies. The twin aims are to raise some income to support the present elderly friars and to achieve a capital appreciation so as to build up the fund for future years.

The Order of Friars Minor Charitable Trust

Trustees’ report 31 December 2021

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Investment policy (continued)

The trustees have also instructed the fund managers to refrain from buying shares in companies associated with armaments, tobacco and contraceptives, as well as any pursuing activities at variance with the charity’s objectives. It has also recently disposed of its holdings in fossil fuel shares and invested in renewable energy instead, following the lead given by Pope Francis.

Review of the year

Pastoral work

All the formation, training and education of friars in initial formation now takes place outside the Custody of Great Britain. The Postulancy is currently located in Galway, Ireland, the Novitiate year is based in Killarney, Ireland, and the study of Philosophy and Theology takes place in Rome, Italy. Friars from the Custody in initial formation will have summer placements in the Custody so as to maintain links with the Custody.

Throughout the year there were no friars in initial formation.

Antony Jukes, in his capacity as Novice Director, and Donal Walsh, in his capacity as Director of Vocations, have attended meetings of the Interprovincial Secretariat for Formation and Studies (ISFS). These meetings are also attended by all friars of the Irish Province involved in formation ministry. With the lifting of Covid-19 restrictions, these meetings are now taking place in person.

In August 2021, four men began their novitiate year at the Interprovincial Novitiate in Killarney. One is from the Austrian Province, one from the Dutch Province and two from the Canadian Province.

Overseas missions

The Franciscan Missionary Union was established many years ago to help the Missionary endeavours of the Order of the Friars Minor. In the 1930’s and 1940’s, the English Province established Missionary Dioceses in India and South Africa. The work done in both countries was considerable and is now in the care of indigenous Franciscan Friars.

The Franciscan Missionary Union has, therefore, opened out towards other Missionary endeavours in various parts of the world. While still keeping in contact with our older Missionary work in India and South Africa we have branched out considerably to help the poor and marginalised in both East and West Africa as well as Sri Lanka and Madagascar. We also try to respond to any emergency situations where and when they occur in conjunction with Missio Scotland, SCIAF and Mary’s Meals.

We endeavour to obtain good estimates and reports for any proposed projects. These grants are made to particular Franciscan Provinces and are administered by fellow Franciscans. The source of these monies comes from the wonderful generosity of friends of the missions who continue to support the work done by the FMU.

The Order of Friars Minor Charitable Trust

Trustees’ report 31 December 2021

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Review of the year (continued)

Promotion of vocation

The following is a report from Donal Walsh, Vocations Director:

Due to Covid 19 restrictions and the Pandemic, promotion of vocations for part of early 2021 continued to be less in-person as a means of contact and communication with those showing interest in the Franciscan Order, to virtual and social media ways of telephone, emails, and Zoom meetings with individuals and groups. This also applied to less travelling in the UK to meet Enquirers or for vocation meetings, gatherings and youth events.

In the second half of 2021, this began to change, like many others, and I started to meet a few enquirers in person along with virtual ways of communication.

During 2021, I received some 36 enquiries about the Franciscan way of life, all of whom received a reply and acknowledgement, and about 5 of whom I have been in regular communication over several months during 2021. With the now in-person contacts and meetings of several hours, there have been many hours of phone calls, emailing and virtual Zoom meetings with some Enquirers as well as a few Zoom conference calls with other Vocation Promotors in the UK and Ireland, and several Franciscans of the English-speaking world who also minister in this area. Some of these meetings with other Franciscans and Vocation Promoters were of a business-like manner and others of a training nature with some guest speakers.

This has been and still is an important support and benefit to me especially in the Pandemic period, and is a way to meet, listen and learn new approaches in animating and promoting vocational service. Lastly, in 2021, on 4 occasions I have given talks for Schools using Zoom on the Franciscan life, mostly to 5th year Senior School students from several classes along with their teachers and took part in a Zoom seminar for young adults on the subject of considering their gifts and future lives.

OFS spiritual assistance

The following is a report for 2021 from Donal Walsh in his role as Spiritual Assistant to the Order of Secular Franciscans.

The major change that took place in the latter part of 2021 was that the number of National Spiritual Assistants was reduced from three to two and I am one of the two Spiritual Assistants for the UK. We assist, guide and support members of the Order of Secular Franciscans (OFS), females and males, who live in their homes, often scattered, who usually meet monthly for prayer, discussion and solidarity as they live out their Franciscan ideals as brothers and sisters.

My role as a Spiritual Assistant is to attend fraternity meetings and special gatherings especially covering 5 out of 9 regions of the UK which comprise about 60 local fraternities. Needless to say, due to distance and areas to be covered by only the two of us, it is a mammoth task to visit all local groups over a year so we mostly concentrate on regional fraternal meetings and special events for Local Fraternities.

The Order of Friars Minor Charitable Trust

Trustees’ report 31 December 2021

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Review of the year (continued)

OFS spiritual assistance (continued)

Again, due to Covid restrictions, actual meetings in person have not taken place until late 2021 but were been replaced by virtual Zoom meetings of the regions and of the National Council considering overall life, structures, decisions and plans for the OFS in Britain. Many of these Zoom meetings have been monthly lasting some 2 hours which I have mostly attended. Although some have been dealing with business, other meetings have been a sharing and dialogue between members and have been a source of support and encouragement for us all especially during the difficult period of Covid and of a local and global virus pandemic.

Finally, the two Spiritual Assistants with the OFS leadership have met via Zoom on 4 occasions in order to discuss planning on important matters, which was advisory, a sharing and support for one another and our responsibilities.

Vigilance with regard to the care of children and vulnerable persons and relevant training

The Safeguarding principles and practice of our church in England and Wales were found deficient by the Independent Inquiry into Child Sexual Abuse (IICSA) and also by the Elliott Inquiry commissioned by our bishops. Accordingly, the bishops sought the services of Nawaz Afzal – a highly respected barrister of much experience in prosecuting sexual offenders and building the needed systems to prevent abuse. All our existing principles and practice were immediately terminated. A single new body was set up: the Catholic Safeguarding Standards Agency (CSSA). It was given full mandatory authority valid in civil and canon law. All churchrelated activity and situations come within its remit.

A special division is the Religious Life Standards Service (RLSS) now responsible for all Religious Congregations in our church. Hitherto it had proved impossible to find satisfactory provision for such widely diverse bodies. The then current alignment with a Diocese was discontinued.

The RLSS now provides advice on all safeguarding matters, including management of allegations, concerns and cases.

The whole approach hangs on 8 Standards proposed by the Elliott report. These set out structural arrangements and expected levels of achievement. The CSSA and RLSS will provide regular and mandatory training and will audit our practice, and provide assistance where performance fails to meet the standards.

We are committed to comply completely with all these arrangements. We are reviewing our own statements of principle and practice accordingly.

Concern for victims and survivors continues to be a high priority. Our duty to them, as well as all other aspects of safeguarding, is regularly reviewed by our trustees and steered by our appointed Safeguarding Lead.

The Order of Friars Minor Charitable Trust

Trustees’ report 31 December 2021

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Guardians’ Report 2021

Glasgow

Presently there are three friars in community.

The great upheaval of the last two years has been the Covid19 pandemic and national lockdown with the resulting closure of the church and loss of income and pastoral activity. With the lifting of restrictions in April all regular activities and services resumed - Sunday and weekday Masses, chaplaincy to the parish primary school, periodic Masses in Vietnamese and Tamil conducted by visiting priests and the use of the parish centre for Twelve Step meetings, parish groups and a mothers and toddlers creche. The ecumenical Bridging-theGap project continues its local outreach work especially to asylum seekers and needy local families. It has rooms in the parish centre.

The St Francis’ Hall welcomes local initiatives such as the twice-weekly neighbourhood bingo club, a deaf club, pipe band rehearsals and regular meetings of the local housing association and the community council. Online training and updating in Safeguarding was undertaken by the Friars as provided by the Scottish Catholic Safeguarding Service. The Safeguarding Audit 2021 for Religious Communities and the 2021 Archdiocesan Audit for parishes have been completed and submitted.

Clevedon

There are three Friars in Clevedon.

Sunday Masses are celebrated in the Parish Church in Clevedon and in the nearby village of Yatton. The parish hall, attached to the church at Clevedon, is well used by the parish and other local groups, such as the Secular Franciscans, the Rotary Club, a mother and toddler group, and a number of exercise, art and language classes.

The Friars continue to minister to people in local residential and nursing homes. One of them acts as Chaplain to the parish school, which is situated in Nailsea.

Stratford

There are four Friars at Stratford. They minister to a large congregation of various nationalities and ethnic backgrounds in the London Borough of Newham. There are families from different countries of Africa and Asia, as well as from Ireland and continental Europe. The Parish Priest acts as Chaplain to the Parish Primary School (St Francis), and is on a rota of Priests from the Newham Deanery who provide chaplaincy care at Newham General Hospital.

Before the restrictions that came into effect at the time of the pandemic, small teams of parishioners would use the friary kitchen to make up sandwiches and hot drinks for homeless people who called at the friary on weekday mornings. There was a hot take-away meal available on Saturdays. Parishioners contributed generously to the expenses of this project, and there were also donations of food (mainly bread) from some of the local stores. The parish hall was used for two periods of three months to provide beds for about 15 people one night each week during the winter months. This project was run by volunteers from the parish and further afield. There was also a dinner one Saturday near to Christmas.

The Order of Friars Minor Charitable Trust

Trustees’ report 31 December 2021

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Guardians’ Report 2021 (continued)

Stratford (continued)

Since the lockdown periods during the pandemic, the Friars themselves have made sandwiches, and though these have been taken by homeless or needy people, the uptake has not been as great as formerly. This is probably because of government and local authority intervention to provide accommodation out of the area for homeless people. We hope to resume the former practice, if needed.

Woodford

The community has seven friars. Three of them had care of the busy parish, one was involved in administration of the Order, and the others were retired or semi-retired.

Covid-19 still made its presence felt and this curtailed most of our pastoral contact except for funerals. We now stream our services to parishioners and frequently had a hundred people being involved this way.

The Friars continued to provide chaplaincy to the parish primary school and to the high school by way of streaming when the schools were open.

Care of those in nursing homes was very difficult and limited because of the need of social distancing.

Parishioners’ activities in terms of care of the disadvantaged were curtailed but collecting food for food banks continued. The parish centre, with its large hall and meeting rooms had to be closed. A new heating system for all the buildings was installed in 2021.

Cordate Community/OFM Birmingham

Background: Pre-Covid

My fellow Cordate Community member, Mark (Fr. Mark Van Beeumen MSC) worked parttime in Tesco’s as a Community Champion . This included him supporting local social projects and schools in a multicultural environment, with a strong presence of socially deprived and Muslim people. His work continued during Covid lockdowns. Likewise, Mark’s voluntary community work e.g. supporting people including refugee’s/asylum seekers, homeless, local residents’ association, Muslim neighbours, ecumenical and interfaith, youth group, in-person and via internet.

I volunteered in city social projects e.g.

♦ St. Chad’s Sanctuary – drop-in centre for refugee and asylum-seeking people;
♦ Sifa/Fireside - drop-in centre for homeless people;
♦ Fatima House – home for destitute refugee and asylum-seeking women;
♦ Birmingham LGBT+ Centre - as a befriender and peer mentor;
♦ Journey Asylum Group.

The Order of Friars Minor Charitable Trust

Trustees’ report 31 December 2021

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Cordate Community/OFM Birmingham (continued)

Background: Pre-Covid (continued)

Other work included:

♦ Occasional small donations/food gifts to above charities and individuals.
♦ Donating food/cleaning materials regularly to Fatima House.
♦ Attending refugee court appeals, liaising with solicitors/others.
♦ Member of lay-led reform movements seeking greater equality/justice in Catholic Church, especially for women and LGBT+ people e.g. Root & Branch, ACTA, Quest.
♦ Visiting and attending services, celebrations at other Christian Churches (e.g. United Reformed, Evangelical, C of E, Quakers, Unitarians), mosques (e.g. Eid, open-days, youth centre, visits in solidarity after local attacks), Liberal Synagogue (e.g. Shabbat, Holocaust Memorial events, refugee talk); and spiritual direction to a counsellor at a centre supporting women working in prostitution.

Covid and Post-Covid

With the onset of Covid all volunteering in projects was stopped for some time, especially involving older volunteers. Slimmed-down services resumed, initially involving staff and a skeletal team of younger volunteers. Some of my one-to-one and group support work shifted to phone calls, zoom and whatsapp e.g. with refugees, spiritual direction, online prayer services.

I largely shielded for long periods of time before and after knee-replacement surgeries in 2020 and 2021 which were postponed on several occasions.

Cordate Community : initially an MSC ( Missionaries of the Sacred Heart ) project, became an inter-congregational MSC/OFM, when I joined Mark in 2016. It came to a close in June 2021 after 16 years when Mark was recalled by his Belgium Province to help initiate an international MSC community project in Antwerp.

OFM Birmingham (from June 2021)

Helping facilitate and support, in partnership with Hope Projects (a charity for refugee people), a home for refugee men in Sparkhill, while they seek leave to remain in the UK with the Home Office. This home has been kindly provided by the Passionists rent-free.

I obtained permission to continue work in Birmingham and expect to be joined by an Italian friar later this Summer. He has worked in east Africa, Brussels and recently completed his psychotherapy training.

We hope to collaborate with German Franciscans (OFM), who are in partnership with a federal government scheme, sending young people aged 18-27 abroad to volunteer in social projects aimed at deepening their European identity.

The Order of Friars Minor Charitable Trust

Trustees’ report 31 December 2021

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Cordate Community/OFM Birmingham (continued)

Mission Statement in Birmingham

We members and associates of the Franciscans (OFM - Order of Friars Minor) seek to help contribute and work towards a more inclusive, socially cohesive, just, and peaceful community/society, which celebrates our unity in rich diversity.

We want to be a friendly presence in a diverse ethnic, faith and secular community.

We aim to focus on helping to support marginalised groups of people in Birmingham city, including but not limited to homeless, refugee and asylum seeking, LGBT+.

We seek to do this in a variety of ways, which include:

♦ Working in collaboration with Hope Projects to help support resident refugees while they pursue their claims for resident status in the UK with the Home Office.
♦ Establishing networks and partnerships with the wider community, grass roots community organisations and charities.
♦ Developing informal and referral pathways with partnership agencies.

We wish to nurture and develop positive ecumenical and interfaith links, understanding, relationships and dialogue, on individual and group levels.

FUTURE PLANS

The 2022 chapter has taken place during 25 – 29 July. The communities are settled and functioning well. However, while that is true, we are very aware that we rely on the good health of a few friars who are key to managing our life together. These friars are wearing two or more hats, are aging and therefore this is a worry. At the moment we are managing but we are exploring ways of becoming less vulnerable including the closure of another friary. The 2022 chapter resolved that the Custodial Council begin a dialogue with the Irish Province, to explore a closer collaboration between the two Provinces with a view to possible integration at a future date.

FINANCIAL REVIEW

Investment performance

The portfolio comprises 77% equities, 2% gilts, and 21% unit trusts and fixed interest funds. The overall value of the portfolio increased by £2,785,878 from a market value of £16,646,590 at the end of 2020 to a value of £19,432,468 at the end of 2021. This does, however, include a further cash injection of £850,000 in 2021.

Income and expenditure

A summary of the year’s results can be found on page 22 of this annual report and accounts. Total income amounted to £1,319,474 compared to £802,623 in 2020. Total expenditure during the year decreased from £803,298 in 2020 to £786,221 in 2021 as a result of fewer grants and donations being made.

The Order of Friars Minor Charitable Trust

Trustees’ report 31 December 2021

FINANCIAL REVIEW (continued)

Income and expenditure (continued)

Net income for the year before gains on investments, therefore, amounted to £533,253 (2020 – net expenditure of £675). Net gains on investments of £2,029,834 (2020 – £206,999) resulted in a net increase in funds for the year of £2,563,087 compared to a net increase of £206,324 in 2020.

Financial position and reserves policy

The balance sheet shows total funds of £24,013,602 (2020 - £21,450,515). Of this, £563,411 (2020 – £545,214) is restricted for specific purposes. £520,016 (2020 – £505,396) is restricted in respect of the Franciscan Missionary Union, which receives money specifically for the Order’s missions abroad. The remainder of the restricted funds represent a number of individually small funds made up of donations for specific purposes.

The charity has unrestricted funds of £23,450,291 (2020 – £20,905,301). Of this £2,867,142 (2020 – £2,213,374) represents tangible fixed assets. About 12 per cent of the total resources owned by the charity comprise tangible fixed assets. The Franciscan Custody in this country can only carry out the aims set out in the first part of this report if it has the use of such assets. Not only are the assets an essential prerequisite for the work of the Custody, but much of the property is not at the complete disposal of the Custody; if the trustees were to vacate any of this property they would regard themselves as obliged to offer it to the Bishop or some other religious order that was prepared to carry on the same work. In these circumstances, therefore, it seems advisable to recognise the resource as a separate fund rather than as an available resource.

The charity has six designated funds.

The first of these is the Sick and Retired Reserve. The average age of the friars in the Custody is steadily increasing and the elderly and infirm friars now outnumber those who have to provide the supporting income. Given the small number of vocations in recent years, there may not be sufficient support available within the Custody unless some of the present resources are set aside for the future. A Sick and Retired Reserve has been set up to provide for the current members of the Order.

The second designated fund is the Maintenance Fund standing at £1,500,000 at the end of the year. The last quinquennial review, carried out at the end of 2015, on one of the charity’s major properties indicated that this fund may need to be enlarged over the next ten years. A further quinquennial review is due to take place in the near future.

As mentioned above, the Custody is faced with a reducing number of friars in the coming years. That will of necessity give rise to decisions on changes to present activities and new ventures necessitating additional capital expenditure. Therefore, it is deemed prudent to set aside through a designated Mission and Development Fund a reserve which the trustees can utilise as and when needed for new initiatives in furthering the mission of the OFM.

The fourth designated fund is the Formation Fund which comprises monies set aside towards funding the formation and education of friars.

The Order of Friars Minor Charitable Trust

Trustees’ report 31 December 2021

FINANCIAL REVIEW (continued)

Financial position and reserves policy (continued)

The fifth, is the relief of poverty fund which represents monies set aside by the trustees with the intention of helping those most in need. The trustees are looking at the possibility of collaborating with charities and housing associations that support refugees, homeless people or victims of domestic violence. One possibility being explored is for the charity to purchase one or more properties which might then be leased to these organisations at a peppercorn rent.

The sixth designated fund is the Birmingham property fund which comprises £500,000 set aside for the purchase of a property in 2022.

The amount of free reserves available after deducting the above designated funds and tangible fixed assets is £6,583,049 (2020 - £7,191,927). The policy of the trustees towards the General Reserve is to hold an amount roughly equivalent to one and a half year’s unrestricted expenditure. The actual amount of free reserves held at 31 December 2021 clearly exceeded the amount demanded by the policy. However, the trustees are aware of the uncertainties created by the aftermath of Covid-19 together with the current macroeconomic and geopolitical climate and the need, therefore, to be cautious. In addition, the charity has recently embarked on a programme of quinquennial reviews of the charity’s properties and it is expected that the results will show that significant investment will be needed in the properties over the next decade. Once the results of the reviews are known, it is the intention to increase the value of the Maintenance Fund thereby reducing free reserves.

GOVERNANCE, STRUCTURE AND MANAGEMENT

Governance

Until 11 November 2014, according to the Statutes of the Order, the friars in Great Britain constituted a Province, i.e., an entity with more than forty professed friars. As such, the Province was administered by a governing body, known as the Definitory, consisting of the Minister Provincial, a Vicar-Provincial, and five other friars, elected by all the brethren at the triennial Chapter. The members of the Definitory were also trustees of the charity.

Because of the decreasing numbers and ageing of the friars, the Province became, as of the Chapter held in November 2014, a Dependent Custody of the Province of Ireland. In effect, for Canon law purposes, the friars in Great Britain became a semi-autonomous entity, led by the Custos and a Council of three friars. They were appointed by the Minister General of the Order, but after three years there was an election of the Custos and Council and thereafter there will be an election every three years. Major appointments and decisions regarding the friars and houses of the Custody need to be ratified by the Provincial of Ireland and his Definitory. The trustees, however, continue to administer the charity and they are solely responsible for the financial management of the Custody.

The Council assigns friars to the various friaries and parishes served by the Franciscans and appoints officers needed for the administration of the Custody. Each friary has a Guardian and Vicar, appointed by the Council, who have responsibility for the friars in their community. The running of each friary is discussed regularly by the whole community.

The Order of Friars Minor Charitable Trust 12

Trustees’ report 31 December 2021

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Governance (continued)

As all trustees are members of the Order they have a detailed knowledge of the work of the charity and of its structure. On being appointed, new trustees are required to spend one full day with those trustees leaving office. They also meet with the Order’s legal, accounting, investment and property advisers during the course of a day to obtain a full briefing of their responsibilities and the charity’s position.

The names of the trustees who served during the year are set out as part of the reference and administrative details on page 1 of this annual report and accounts and brief biographical details on each of the trustees who served during the year are given below:

Reverend Michael Copps OFM

Father Michael Copps has been a member of the Order since 1965. After initial formation he was involved in pastoral work in parishes and the education of new members as Novice Director. From 1981 to 1990 he was elected Guardian of the community at Chilworth and held the post of Novice Director for the same period. From 1990 to 1999 he was a parish priest in Nottingham and was Guardian of the community from 1994 to 1997. In 1999 he became parish priest in Forest Gate, East London and in 2002 in Stratford and Guardian of the community. In 2005 he was elected Minister Provincial of the Province of Friars Minor in this country and served in that capacity until 2014. He has also served on the Finance Committee of the Province. After a period as parish priest and Guardian at Stratford he was elected as Custos in 2018. Also in that year, he took up the role of Guardian in Woodford Green.

Reverend Patrick Lonsdale OFM

Father Patrick Lonsdale entered the Order in 1965. He gained a BA at the University of Kent in Canterbury. Since Ordination in 1974 he has worked in various friaries and parishes of the Custody, and has been Guardian at Craigmillar, Woodford, Forest Gate, Glasgow, Chilworth and Nottingham. He was also Parish Priest at Craigmillar, Glasgow and Chilworth. He was a Trustee and Definitor from 1996 to 2005. He served as Custos and Trustee from 2014 to 2018, and is currently a Councillor and Trustee. From 1990 to 1996 he was National Assistant to the Secular Franciscan Order. From 1996 to 2002 he was a member of a hermitage community at Penmaenmawr, which was a joint project with the Capuchins. Over the years Patrick has also served as Secretary of the Province, Secretary of Formation, and as Animator of Vocations. He is currently Guardian of the community at Stratford and is Religious Assistant to the Federation of Poor Clares in Great Britain.

Reverend Antony Jukes OFM

Father Antony Jukes joined the Order of Friars Minor in 2002, having previously worked and completed his training as an accredited Chartered Accountant. As part of his formation as a Franciscan Friar, Antony completed a BA and an MA degree in Theology at the Franciscan International Study Centre in Canterbury. After ordination as a priest, he served in our Franciscan parish in the Gorbals area of Glasgow for two years and then worked for two years in youth ministry at the Cold Ash Centre before returning to Canterbury to help with the formation of friars and to teach in what was the Franciscan International Study Centre. With the closure of the Study Centre in June 2017, Antony moved to the friary in Killarney, Ireland, where he is now the Novice Director in the new Interprovincial Noviciate.

The Order of Friars Minor Charitable Trust

Trustees’ report 31 December 2021

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Governance (continued)

Reverend Edmund Highton OFM

Father Edmund Highton has been a member of the Order since 1966. He had commercial experience of economics, commercial law and the finance of foreign trade through the "Institute of Export" prior to joining the Order. He spent many years as a missionary in South Africa, where he was a member of the Bishop's Council for about ten years with duties including the distribution of educational bursaries for secondary and tertiary education. He was a Parish Priest, caring for financial and pastoral concerns, from 1975 onwards. Now back in Britain, his present duties include the care of the Franciscan Missionary Union and being Parish Priest of Blessed John Duns Scotus in Glasgow.

Reverend Michael O’Grady OFM

Father Michael O’Grady joined the Franciscan Order in September 2008 after working for the HSBC Bank in various roles, including business banking, for twenty years. He began his postulancy in Chilworth before moving to Ennis for his novitiate year where he took his simple vows in September 2011. He then moved to Canterbury to begin his academic formation with a year of Franciscan Studies and two years of philosophy. In 2014 he moved to the fraternity in Stratford to begin his theology degree at Heythrop College, London. Michael took his solemn vows in September 2015 and was ordained a deacon in July 2017. Upon completion of his studies in 2017 Michael was sent to St Boniface’s, San Francisco for three months as part of his diaconate placement working with the homeless. In 2018 he spent two months in Kraainem, Belgium with the Irish friars in preparation for his ordination to the priesthood in March 2018. He was then assigned as parish priest in Stratford and nominated as bursar of the Custody. He now serves on the Council and is a trustee of the charity.

Structure and management

The trustees are ultimately responsible for the policies, activities and assets of the charity. They meet monthly to review developments with regard to the charity and its activities and make any important decisions. When necessary, the trustees seek advice and support from the charity’s professional advisers including property consultants, investment managers, solicitors and accountants. The day to day management of the charity’s activities, and the implementation of policies, is delegated to the appropriate members of the Order or senior staff. Financial decisions are overseen by the trustees. Mandates with the principal bankers are in place, to the effect that any cheque or online payment above £5,000 must have two authorisations, including one by a trustee. Online banking has been introduced at Custody level enabling daily monitoring of bank balances and other financial controls.

The Custody comprises 26 friars (as at 31 December 2021) who lived as part of four communities during the year. Three of these community houses are situated in the South of England (Clevedon, Somerset; Stratford in East London and Woodford Green, Essex) whilst the fourth community house is in Glasgow, Scotland. The four houses that remain open continue to exercise parochial responsibilities in collaboration with the bishops of the dioceses concerned.

As stated above, each community has a local guardian appointed by the Council. The local guardian is responsible for both the needs and the care of the friars in his community and he liaises regularly with the trustees. All local superiors meet together occasionally with the trustees to discuss developments and future plans and strategy.

The Order of Friars Minor Charitable Trust

Trustees’ report 31 December 2021

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Key management personnel

The strategic direction and the day-to-day management of the work of the charity is in the hands of the trustees and the Guardians at each friary. They are all members of the Order of Friars Minor and receive no remuneration for this work. All these friars have had many years‘ experience in the Order and are well aware of their responsibilities without the need for specific performance indicators.

Working with other organisations

The friars in the parishes served by the Custody work very closely with the bishops administering the dioceses within which the parishes are situated. That will include membership of the local deanery and helping out in neighbouring parishes where possible. In addition, most communities have a primary school in the parish and there is close connection with these schools as well as secondary schools serving the parishes of the friars. The friars are also engaged in working with statutory bodies, other Christian Churches, other faith communities, and other voluntary groups.

Trustees’ responsibilities statement

The trustees are responsible for preparing the trustees' report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales and in Scotland requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these accounts, the trustees are required to:

♦ select suitable accounting policies and then apply them consistently;
♦ observe the methods and principles in the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102);
♦ make judgments and estimates that are reasonable and prudent;
♦ state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
♦ prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

Key management personnel

The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the relevant Charity (Accounts and Reports) Regulations, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of the charity’s trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Order of Friars Minor Charitable Trust

Trustees’ report 31 December 2021

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Risk management

The trustees undertake an annual review of the principal risks and uncertainties that the charity faces categorising the risks between those affecting the governance and management of the charity, operational risks, financial risks, reputational risks and those which occur because of circumstances outside of the charity's control such as changes in government policy, laws and regulations. They regularly review the measures already in place, or needing to be put in place, to establish policies, systems and procedures to mitigate those risks identified in the annual review. They also ensure that action is taken to implement changes to those policies, systems and procedures should they be needed to minimise or manage any potential impact on the charity should those risks materialise.

The trustees have identified five main areas where risks may occur: governance and management; operational; financial; reputational; and regulatory.

♦ Governance and management looks at the risk of the Order, and hence the charity, suffering from a lack of direction, at the skills and training of its members and staff, and the good use of its resources.
♦ Operational looks at the risks inherent in the charity’s activities including the members of the Order engaging in inappropriate activities, the unsuitability of buildings, poor maintenance, shortcomings in the services provided, poor health and safety, lack of a disaster recovery plan, etc.
♦ Financial risks include those arising as a result of poor budgetary control, inappropriate spending, poor accounting, inappropriate investment policies, etc.
♦ Reputational looks at possible damage to the Order’s, and hence the charity’s, reputation.
♦ Regulatory looks at the effects of government policies, the consequences of noncompliance with laws and regulations and poor risk assessment.

Having assessed the major risks to which the charity is exposed, the trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks. They also work in close collaboration with their insurers so as to maintain adequate coverage of the risks.

Apart from the impact of Covid-19 on the charity and its work (see above), the key risks for the charity, as identified by the trustees, are described below together with the principal ways in which they are mitigated:

The Order of Friars Minor Charitable Trust 16

Trustees’ report 31 December 2021

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Risk management (continued)

♦ The trustees are aware that there is both a moral and legal obligation to care for the older members of the Order. None of the friars have resources of their own as all earnings, pensions and other income have been donated to the charity under a Gift Aid compliant Deed of Covenant. As the age profile increases, so too does the need to provide care for the friars. Key elements of the management of this risk are: (a) ensuring that the charity has the available financial resources to finance this care both now and in the years ahead by setting aside assets in a designated fund, the value of which has been loosely based on actuarial principles; and (b) ensuring that processes are in place to review regularly the ministries and needs of individual friars encouraging those who need it to take on less demanding ministries and for identifying those who need extra care and help.
♦ The charity donates significant sums in support of the work of the Order and other organisations. The vast majority of donations sent overseas are to fund projects administered directly by members of the Order whether or not the funds are used here in Great Britain or overseas, the trustees always ensure that they are fully briefed about and are familiar with the work of a potential recipient of funds, that funds are transferred via bank transfer, that proof of receipt is obtained and that, wherever possible (and always in the case of monies sent overseas), a full written report of how the monies have been utilised and applied is obtained from the recipient.
♦ The charity's principal asset comprises listed investments, the value of which is dependent on movements in UK and world stock markets. The investments are managed by reputable investment managers who adhere to a policy agreed by the trustees. The investment strategy is assessed regularly to ensure it remains appropriate to the charity's needs, both now and in the future. Since the end of the financial year, there has been some volatility on world stock markets in response to the Covid-19 pandemic. The trustees, along with their investment managers, will continue to monitor the impact of the pandemic and other factors on stock markets but the charity is a long term investor and the trustees take a long term view.

Fundraising statement

The charity does not carry out any direct fundraising with the public. It does not use the services of any third party organisation to help in its fundraising activities and no complaints were received about its fundraising activities during the financial year. However, if a complaint was to be received, it would be handled by a trustee.

MEMBERS OF THE ORDER

The trustees wish to record their recognition of the professionalism and commitment of the individual members of the Order.

Their dedication and positive approach are much appreciated.

Signed on behalf of the trustees:

Michael Copps

Trustee

Approved by the trustees on: 15 September 2022

The Order of Friars Minor Charitable Trust

Independent auditor’s report 31 December 2021

Independent auditor’s report to the members of The Order of Friars Minor Charitable Trust

Opinion

We have audited the accounts of The Order of Friars Minor Charitable Trust (the ‘charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

♦ give a true and fair view of the state of the charity’s affairs as at 31 December 2021 and of its income and expenditure for the year then ended;
♦ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
♦ have been prepared in accordance with the requirements of the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

The Order of Friars Minor Charitable Trust 18

Independent auditor’s report 31 December 2021

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Accounts, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

♦ the information given in the trustees’ annual report is inconsistent in any material respect with the accounts; or
♦ sufficient and proper accounting records have not been kept; or
♦ the accounts are not in agreement with the accounting records and returns; or
♦ we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

The Order of Friars Minor Charitable Trust

Independent auditor’s report 31 December 2021

Auditor’s responsibilities for the audit of the accounts (continued)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

♦ The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
♦ We identified the laws and regulations applicable to the charity through discussions with management and trustees and from our knowledge and experience of the sector;
♦ We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the activities of the charity. These included but were not limited to the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2019) and Safeguarding Regulations; and
♦ We assessed the extent of compliance with the laws and regulations identified above through making enquiries of those charged with governance and review of minutes of trustees’ meetings.

We assessed the susceptibility of the charity’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:

♦ Making enquiries of management and trustees as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
♦ Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

♦ Performed analytical procedures to identify any unusual or unexpected relationships;
♦ Tested and reviewed journal entries to identify unusual transactions;
♦ Carried out substantive testing of expenditure including the authorisation thereof;
♦ Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
♦ Investigated the rationale behind significant or unusual transactions.

The Order of Friars Minor Charitable Trust

Independent auditor’s report 31 December 2021

Auditor’s responsibilities for the audit of the accounts (continued)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

♦ Agreeing financial statement disclosures to underlying supporting documentation;
♦ Reading the minutes of meetings of the trustee board; and
♦ Enquiring of as to actual and potential litigation and claims.

As a result of our procedures we did not identify any key audit matters relating to irregularities.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act and in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

27 September 2022

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

The Order of Friars Minor Charitable Trust 21

Statement of financial activities Year to 31 December 2021

Notes	Unrestricted funds £	Restricted funds £	2021 Total funds £	Unrestricted funds £	Restricted funds £	2020 Total funds £
Income from: Donations and legacies 1 Investments and bank interest 2 Charitable activities . Church repository sales Other sources 3 Total income Expenditure on: Raising funds . Investment management fees Charitable activities . Grants and donations in support of the work of the Order and other charities 4 . Support of members of the Order and their ministry 5 . Supplies for church repositories Total expenditure Net income (expenditure) before gains on investments and transfers 7 Net investment gains Net income (expenditure) before transfers Transfers between funds 15 Net income (expenditure) and net movement in funds for the year Reconciliation of funds: Total funds brought forward at 1 January 2021 Total funds carried forward at 31 December 2021	333,316 637,687 5,777 9,507	324,743 — — 8,444	658,059 637,687 5,777 17,951	167,092 477,023 4,428 24,340	114,692 — — 15,048	281,784 477,023 4,428 39,388
	986,287	333,187	1,319,474	672,883	129,740	802,623
	87,133 134,706 444,936 4,456	— 83,504 31,486 —	87,133 218,210 476,422 4,456	72,082 89,372 427,046 4,242	— 193,430 17,126 —	72,082 282,802 444,172 4,242
	671,231	114,990	786,221	592,742	210,556	803,298
	315,056 2,029,834	218,197 —	533,253 2,029,834	80,141 206,999	(80,816) —	(675) 206,999
	2,344,890 200,000	218,197 (200,000)	2,563,087 —	287,140 —	(80,816) —	206,324 —
	2,544,890 20,905,301	18,197 545,214	2,563,087 21,450,515	287,140 20,618,161	(80,816) 626,030	206,324 21,244,191
	23,450,191	563,411	24,013,602	20,905,301	545,214	21,450,515

All of the charity’s activities were derived from continuing operations during the above two financial periods.

All recognised gains and losses are included in the above statement of financial activities.

The Order of Friars Minor Charitable Trust 22

Balance sheet 31 December 2021

Notes	2021 £	2021 £	2020 £	2020 £
Fixed assets Tangible fixed assets 11 Investments 12 Current assets Debtors . Amounts falling due after one year 13 . Amounts falling due within one year 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total net assets The funds of the charity Restricted funds 15 Unrestricted funds . Designated funds 16 . Tangible fixed assets fund 17 . General fund	194,800 56,300 1,584,187	2,867,142 19,432,468	225,042 90,859 2,331,106	2,213,374 16,646,590
		22,299,610 1,713,992		18,859,964 2,590,551
	1,835,287 (121,295)		2,647,007 (56,456)
	14,000,000 2,867,142 6,583,049		11,500,000 2,213,374 7,191,927
		24,013,602		21,450,515
		563,411 23,450,191		545,214 20,905,301

		24,013,602		21,450,515
Approved by and signed on behalf of the trustees by:

Michael Copps

Trustee

Approved by the trustees on: 15 September 2022

The Order of Friars Minor Charitable Trust 23

Statement of cash flows Year to 31 December 2021

Notes	Notes	2021 £
Cash flows from operating activities: Net cash provided by (used in) operating activities A Cash flows from investing activities: Investment income and bank interest received Purchase of tangible fixed assets Proceeds from the disposal of investments Purchase of investments Net cash used in investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 January 2021 Cash and cash equivalents at 31 December 2021 B		68,362
		633,911 (693,148) 1,720,715 (2,379,302)
		(717,824)
		(649,462) 2,413,027
		1,763,565
Notes to the statement of cash flows for the year to 31 December 2021. Reconciliation of net movement in funds to net cash provided by (used activities 2021 £ Net movement in funds (as per the statement of financial activities) 2,563,087 Adjustments for: Depreciation charge 125,921 Gains on investments (2,029,834) Investment income and bank interest receivable (637,687) Decrease in debtors 68,577 (Decrease) in creditors (21,702) Net cashprovided by (used in) operating activities 68,362 Analysis of changes in cash and cash equivalents i.e. net debt 2020 £ Cash flows £ Cash at bank and in hand 2,331,106 (746,919) Cash held by investment managers 81,921 97,457 Total cash and cash equivalents 2,413,027 649,462
Cash at bank and in hand Cash held by investment managers Total cash and cash equivalents	2,331,106 81,921	(746,919) 97,457
	2,413,027	649,462

The Order of Friars Minor Charitable Trust

Principal accounting policies 31 December 2021

The principal accounting policies adopted, judgements and key sources of estimation and uncertainty in the preparation of the accounts are laid out below.

Basis of accounting

The accounts have been prepared for the year to 31 December 2021 with comparative information given in respect to the year to 31 December 2020.

The accounts have been prepared under the historical cost convention with items initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts have been prepared in accordance with the principles set out in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees to make significant judgements and estimates.

The items in the accounts where these judgements and estimates have been made include:

♦ estimating the useful economic life of tangible fixed assets for the purpose of determining the annual deprecation charge;
♦ determining the discount rate to be applied when calculating the present value of amounts receivable after one year;
♦ estimating the amounts to be set aside as designated reserves; and
♦ estimating future income and expenditure flows for the purpose of assessing going concern (see below).

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of at least one year from the date of approval of these accounts.

The trustees, along with their investment managers, will continue to monitor the impact of the aftermath of the Covid-19 pandemic and the impact on stock markets of the current macroeconomic and geopolitical climate but the charity is a long term investor and the trustees take a long term view.

The Order of Friars Minor Charitable Trust

Principal accounting policies 31 December 2021

Assessment of going concern (continued)

Therefore, the trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above.

With regard to the next accounting period, the year ending 31 December 2021, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets – both of which may be impacted by Covid-19 and other factors outside of the charity’s control.

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income comprises donations, legacies, investment income, interest receivable, church repository sales, the surplus on disposal of assets and other income.

Donations, including salaries and pensions of individual religious received under Gift Aid or deed of covenant, are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.

Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the charity.

The Order of Friars Minor Charitable Trust

Principal accounting policies 31 December 2021

Income recognition (continued)

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Income from repository sales is recognised when the risks and rewards of ownership have transferred to the buyer.

All other income is measured at fair value and accounted for on an accruals basis.

Expenditure recognition and the basis of allocating costs

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and governance support costs.

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice. These costs are allocated directly to support of members of the Order and their ministry. All other costs are directly allocated to the headings in the statement of financial activities and there is no apportionment. The classifications in the statement of financial activities are as follows:

a. The costs of raising funds comprise the fees paid to investment managers in connection with the management of the charity’s investment portfolio.
b. The costs of charitable activities comprise expenditure on the charity’s primary charitable purposes as described in the trustees’ report and include:
♦ Grants and donations in support of the work of the Order and other charities This is made up entirely of grants, including grants to support the Order’s generalate and grants in support of the Order’s work both in the UK and overseas. Charitable grants and donations are included in the statement of financial activities when approved for payment. Provision is made for grants approved but unpaid at the period end.
♦ Support of members of the Order and their ministry This enables the members to carry out the charitable work of the Order in the areas of the advancement of the Roman Catholic religion and the relief of poverty.
♦ Supplies for church repositories This is expenditure on repository items, such as books, which are purchased for resale.

All expenditure is stated inclusive of irrecoverable VAT.

The Order of Friars Minor Charitable Trust

Principal accounting policies 31 December 2021

Tangible fixed assets

All assets costing more than £1,500 and with an expected useful life exceeding one year are capitalised.

♦ Freehold land and buildings
Parishes

The trustees are the legal owners of churches and other parish land and buildings. In the event of the Order ceasing its ministry in a parish, the trustees would consider themselves obliged to allow such assets to continue to be used indefinitely and rent free to meet the needs of the parish for a church and related accommodation. As such assets are not therefore susceptible to a meaningful valuation and there is no reliable information as to their cost, they are not valued for the purposes of these accounts.

The buildings consist of churches, presbyteries and parish halls and were constructed up to 100 years ago, with additions and improvements since. They are situated in Clevedon (Somerset), Yatton (Somerset), Stratford (London) and Woodford Green (Essex).

School occupied land and buildings

The freehold of the land and buildings legally owned by the charity and occupied rent free on behalf of the Trustees of Nottingham Academy are valued at £nil. The trustees consider that no meaningful value can be attributed to these assets, since they are not used directly by the charity, do not generate income and cannot be disposed of in the open market or put to alternative use while such occupation, which may be indefinite, continues.

Other land and buildings
- Where these have been owned at least from 1983, they are stated at a trustees’ valuation made in 1993 based on replacement cost for existing use. Under the transitional rules of FRS 102 this valuation is now regarded as deemed cost. Additions to other land and buildings since 1983 are stated at cost. Depreciation is provided at 2% per annum on a straight-line basis to write the buildings off over their estimated useful economic life to the Order.
♦ Freehold improvements

Depreciation is provided at the rate of 5% per annum on cost in order to write each asset off over its expected useful life. A full year of depreciation is charged in the year of acquisition.

♦ Motor vehicles Depreciation is provided at the rate of 20% per annum on cost in order to write each asset off over its expected useful life.
♦ Furniture and equipment Expenditure on the purchase and replacement of furniture and equipment is capitalised and depreciated over a five year period, based on the estimated useful life of the asset, on a straight line basis.

The Order of Friars Minor Charitable Trust 28

Principal accounting policies 31 December 2021

Fixed asset investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The charity does not acquire put options, derivatives or other complex financial instruments.

As noted above the main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Debtors

Debtors are recognised at the settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Funds structure

The funds of the charity are in the main unrestricted and available for use in furtherance of the charity's objectives at the discretion of the trustees. Within the total unrestricted funds of the charity are funds representing non-liquid assets and funds which the trustees have designated for specific purposes. Details of these are provided in notes 16 and 17.

Details of funds raised for a specific purpose or subject to donor-imposed conditions, and therefore restricted, are given in note 15.

Services provided by members of the Order

For the purposes of these accounts, no monetary value has been placed on the administrative and other services provided by the members of the Order.

The Order of Friars Minor Charitable Trust

Principal accounting policies 31 December 2021

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds.

Leased assets

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight-line basis over the term of the lease.

The Order of Friars Minor Charitable Trust

Notes to the accounts 31 December 2021

1 Income from: Donations and legacies

	Unrestricted funds £	Restricted funds £	2021 Total funds £	Unrestricted funds £	Restricted funds £	2020 Total funds £
Donations . Pastoral offerings . General donations Legacies Salaries and pensions of individual religious received under deed of covenant and Gift Aid	94,594 146,591	— 324,243	94,594 470,834	60,952 31,130	— 104,692	60,952 135,822
	241,185 2,000 90,131	324,243 500 —	565,428 2,500 90,131	92,082 2,475 72,535	104,692 10,000 —	196,774 12,475 72,535
	333,316	324,743	658,059	167,092	114,692	281,784

2 Income from: Investments and bank interest

	Unrestricted funds £	Restricted funds £	2021 Total funds £	Unrestricted funds £	Restricted funds £	2020 Total funds £
Income from listed investments Other interest receivable Unwinding of debtor held at present value (note 13)	636,278 (5,149) 6,558	— — —	636,278 (5,149) 6,558	470,831 7,621 (1,429)	— — —	470,831 7,621 (1,429)
	637,687	—	637,687	477,023	—	477,023

3 Income from: Other sources

Income from: Other	sources
	Unrestricted funds £	Restricted funds £	2021 Total funds £	Unrestricted funds £	Restricted funds £	2020 Total funds £
Sundry income	9,507	8,444	17,951	24,340	15,048	39,388

4 Expenditure on: Grants and donations in support of the work of the Order and other charities

charities
	Unrestricted funds £	Restricted funds £	2021 Total funds £	Unrestricted funds £	Restricted funds £	2020 Total funds £
Grants to institutions Support of the Order’s Generalate For the relief of poverty and advancement of education and religion generally . Foreign Missions of the Order of Friars Minor . Miscellaneous grants to institutions Other donations	10,775 — 105,000 18,931	— 74,766 — 8,738	10,775 74,766 105,000 27,669	11,671 — 68,000 9,701	— 179,379 — 14,051	11,671 179,379 68,000 23,752
	134,706	83,504	218,210	89,372	193,430	282,802

The Order of Friars Minor Charitable Trust

Notes to the accounts 31 December 2021

5 Expenditure on: Support of members of the Order and their ministry

	Unrestricted funds £ 138,874 55,994 120,176 45,473 8,440 32,503 43,476 444,936	Restricted funds £ 3,421 945 — — 9,140 — 17,980 31,486	2021 Total funds £ 142,295 56,939 120,176 45,473 17,580 32,503 61,456 476,422	Unrestricted funds £	Restricted funds £	2020 Total funds £
Living and personal expenses of friars Premises Depreciation of freehold property Grants to former members Friars’ formation Governance costs (note 6) Other costs				131,296 58,162 81,292 35,312 6,020 44,055 70,909	1,702 851 — — 6,084 — 8,489	132,998 59,013 81,292 35,312 12,104 44,055 79,398
				427,046	17,126	444,172

6 Governance costs

Governance costs
	Unrestricted funds £ 32,503 — 32,503	Restricted funds £ — — —	2021 Total funds £	Unrestricted funds £	Restricted funds £	2020 Total funds £
Legal and professional Meeting costs			32,503 —	43,328 727	— —	43,328 727
			32,503	44,055	—	44,055

7 Net income (expenditure) before gains on investments and transfers

This is stated after charging:

	Unrestrictedfunds	Unrestrictedfunds
	2021 Total funds £	2020 Total funds £
Auditor’s remuneration (including VAT) . Statutory audit services . Other services Depreciation Operatinglease rentals	23,340 3,000 125,921 1,390	25,000 3,000 87,958 1,346

8 Staff costs and remuneration of key management personnel

The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the trustees and the Guardians at each friary. They received no remuneration in the year (2020 - none).

There are no staff costs as the charity does not employ staff (2020 - none).

9 Trustees expenses and transactions with trustees

As members of the Order, the trustees’ living expenses during the year were borne by the charity.

As members of the Order, none of the trustees have resources of their own as all earnings, pensions and other income have been donated to the charity under gift aid. During the year the amount donated by the trustees to the charity was £20,268 (2020 - £16,942).

The Order of Friars Minor Charitable Trust

Notes to the accounts 31 December 2021

9 Trustees expenses and transactions with trustees (continued)

The trustees have purchased insurance to protect the charity from any loss arising from negligent acts, errors or omissions on the part of the trustees and to indemnify the trustees or other officers against the consequences of any neglect or default on their part. The insurance premium paid by the charity during the year totalled £622 (2020 - £518) and provides cover of up to a maximum of £1,000,000 (2020 - £1,000,000).

10 Taxation

The Order of Friars Minor Charitable Trust is a registered charity and, therefore, is not liable to taxation on income and gains derived from its charitable activities, as it falls within the various exemptions available to registered charities.

11 Tangible fixed assets

Tangible fixed assets
	Freehold land and buildings £	Improvements to freehold buildings £	Motor vehicles £	Furniture and equipment £	2021 Total £
Cost or valuation At 1 January 2021 Additions At 31 December 2021 At cost At deemed cost (1983 valuation) Depreciation At 1 January 2021 Charge for the year At 31 December 2021 Net book values At 31 December 2021 At 31 December 2020	3,287,052 —	313,993 774,709	61,939 4,890	7,907 —	3,670,891 779,689
	3,287,052	1,088,702	66,919	7,907	4,450,580
	286,745 3,000,307	1,088,702 —	66,919 —	7,907 —	1,450,580 3,000,307
	3,287,052	1,088,702	66,919	7,907	4,450,580
	1,366,555 65,741	39,781 54,435	46,099 4,164	5,082 1,581	1,457,517 125,921
	1,432,296	94,216	50,263	6,663	1,583,438
	1,854,756	994,486	16,656	1,244	2,867,142
	1,920,497	274,212	15,840	2,825	2,213,374

As permitted under Financial Reporting Standard 102 (FRS 102), the charity has continued to adopt a policy of not revaluing its tangible fixed assets.

It is likely that there are material differences between the open market values of the charity’s land and buildings and their book values. These arise from the specialised nature of some properties, i.e. the churches and other parish buildings, and the effects of inflation. The amount of such differences cannot be ascertained without incurring significant costs, which, in the opinion of trustees, is not justified in terms of the benefit to the users of the accounts.

The historical cost of the freehold land and buildings included above at a 1983 valuation cannot be ascertained with accuracy. Under the transitional rules of FRS 102 this valuation is now regarded as deemed cost.

The Order of Friars Minor Charitable Trust

Notes to the accounts 31 December 2021

12 Investments

Investments
	Total 2021 £	Total 2020 £
Listed investments Market value at 1 January 2021 Additions at cost Disposals at opening book value (proceeds: £1,720,715, realised gains £97,627) Unrealised gains Market value at 31 December 2021 Cash held by investment managers for reinvestment Cost of listed investments at 31 December 2021	16,564,669 2,379,302 (1,623,088) 1,932,207	15,681,386 2,503,999 (1,971,691) 350,973
	19,253,090 179,378	16,564,669 81,921
	19,432,468	16,646,590
	13,951,554	12,797,223

Listed investments held at 31 December 2021 comprised the following:

	Total 2021 £	Total 2020 £
UK government securities Unit trusts UK fixed interest Equities	881,209 270,396 1,151,605 16,649,880	602,213 2,447,609 967,510 12,547,337
	19,253,090	16,564,669

There were no individual holdings as at 31 December 2021 which were deemed material in comparison with the market value of the entire listed portfolio held at that date (2020 – none).

13 Debtors

Debtors
	Total 2021 £	Total 2020 £
Prepayments and other sundry debtors Proceeds from disposal of freehold properties (see below) . Amounts falling due within one year Proceeds from disposal of freehold properties (see below) . Amounts falling due after one year	21,397 34,903	62,756 28,103
	56,300 194,800	90,859 225,042
	251,100	315,901

In 2012, the charity disposed of a freehold property in Dundee, Scotland for agreed proceeds of £510,000. Under the agreed payment schedule, £280,000 was received prior to 31 December 2021. The balance will be received as follows: 2022 and 2023 - £35,000 each year and £40,000 for each of the following four years. This sale agreement constitutes a financial arrangement as defined by FRS 102. Therefore, in order to comply with the Charities SORP FRS 102 and FRS 102 itself, the proceeds receivable from the disposal of the property have been discounted to their present value using an effective discount rate of 0.05%, the rate available to the charity on commercial bank deposits. The notional interest is credited to the statement of financial activities as the discount is “unwound”.

The Order of Friars Minor Charitable Trust 34

Notes to the accounts 31 December 2021

14 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
	Total 2021 £ 25,800 7,153 86,541 1,801 121,295	Total 2020 £ 40,545 11,287 — 4,624 56,456
Accruals and other creditors Deferred income Improvements to freehold buildings Expense and similar creditors

15 Restricted funds

The income funds of the charity include the following restricted funds, comprising the unexpended balances of donations received for specific purposes:

	At 1 January 2021 £	Income £	Expenditure and transfers £	At 31 December 2021 £
Franciscan Missionary Union Stratford Building Project Woodford Green Heating Project Other restricted funds	505,396 11,920 — 27,898	120,872 — 200,000 12,315	(106,252) — (200,000) (8,738)	520,016 11,920 — 31,475
	545,214	333,187	(314,990)	563,411
	At 1 January 2020 £	Income £	Expenditure £	At 31 December 2020 £
Franciscan Missionary Union Stratford Building Project Other restricted funds	581,218 11,920 32,892	120,683 — 9,057	(196,505) — (14,051)	505,396 11,920 27,898
	626,030	129,740	(210,556)	545,214

The Franciscan Missionary Union represents monies received specifically for the Order’s missions abroad.

The Stratford Building Project represents monies received specifically to assist with the remodification of buildings of a parish administered on behalf of the local diocese by the friars in Stratford, London. The majority of the building work was undertaken in 2010.

The Woodford Green Heating Project represents monies received specifically towards the modernisation of the heating system at the Woodford Green site.

Other restricted funds represent a number of individually small funds made up of donations for specific purposes.

The Order of Friars Minor Charitable Trust 35

Notes to the accounts 31 December 2021

16 Designated funds

The unrestricted funds of the charity include the following funds designated for specific purposes.

purposes.
	At 1 January 2021 £	Designated in year £	Utilised/ Released in year £	At 31 December 2021 £
Sick and retired reserve Maintenance fund Mission and development fund Formation fund Relief of poverty fund Birmingham property fund	8,000,000 1,500,000 1,000,000 1,000,000 — —	6,442 — — — 2,000,000 500,000	(6,442) — — — — —	8,000,000 1,500,000 1,000,000 1,000,000 2,000,000 500,000
	11,500,000	2,506,442	(6,442)	14,000,000
	At 1 January 2020 £	Designated in year £	Utilised/ Released in year £	At 31 December 2020 £
Sick and retired reserve Maintenance fund Mission and development fund Formation fund	8,000,000 1,500,000 1,000,000 1,000,000	10,327 — — —	(10,327) — — —	8,000,000 1,500,000 1,000,000 1,000,000
	11,500,000	10,327	(10,327)	11,500,000

♦ Sick and retired reserve

This consists of monies which the trustees have set aside in order to provide for older friars and those in ill health. The reserve has been calculated so as to provide income to communities with elderly or sick friars to care for.

♦ Maintenance fund

The maintenance fund represents monies set aside by the trustees for the upkeep and repair of the buildings of the Custody. A quinquennial review carried out towards the end of 2015 on one of the charity’s major properties indicated that this fund will need to be expended over the next ten years in respect to that one property alone.

♦ Mission and development fund

The mission and development fund comprises monies set aside towards funding new initiatives in furtherance of the mission of the Order.

♦ Formation fund

The formation fund comprises monies set aside towards funding the formation and education of friars. The monies held in the formation fund are reviewed on a regular basis during the year by the trustees.

♦ Relief of poverty fund

The relief of poverty fund represents monies set aside by the trustees with the intention of helping those most in need. The trustees are looking at the possibility of collaborating with charities and housing associations that support refugees, homeless people or victims of domestic violence. One possibility being explored is for the charity to purchase one or more properties which might then be leased to these organisations at a peppercorn rent..

The Order of Friars Minor Charitable Trust

Notes to the accounts 31 December 2021

16 Designated funds (continued)

♦ Birmingham property fund
The Birmingham property fund comprise monies set aside for the purchase of a property in 2022.

17 Tangible fixed assets fund

Tangible fixed assets fund
	Total 2021 £	Total 2020 £ 2,292,430 79,056 2,213,374
At 1 January 2021 Net movement in year At 31 December 2021	2,213,374 653,768
	2,867,142

The tangible fixed assets fund represents the net book value of the charity’s tangible fixed assets. This fund has been established to recognise the fact that the assets are required for the day-to-day operation of the charity and are not available for other purposes or as a general reserve.

18 Analysis of net assets between funds

	General funds £	Designated funds £	Tangible fixed assets fund £	Restricted funds £	Total 2021 £
Fund balances at 31 December 2021 are represented by: Tangible fixed assets Investments Net current assets Total net assets	— 5,432,468 1,150,581	— 14,000,000 —	2,867,142 — —	— — 563,411	2,867,142 19,432,468 1,713,992
	6,583,049	14,000,000	2,867,142	563,411	24,013,602
	General funds £	Designated funds £	Tangible fixed assets fund £	Restricted funds £	Total 2020 £
Fund balances at 31 December 2020 are represented by: Tangible fixed assets Investments Net current assets Total net assets	— 5,146,590 2,045,337	— 11,500,000 —	2,213,374 — —	— — 545,214	2,213,374 16,646,590 2,590,551
	7,191,927	11,500,000	2,213,374	545,214	21,450,515

The Order of Friars Minor Charitable Trust 37

Notes to the accounts 31 December 2021

18 Analysis of net assets between funds (continued)

The total unrealised gains at 31 December 2021 constitute movements on revaluation and are as follows:

are as follows:
	Total 2021 £	Total 2020 £
Unrealised gains included above: On investments Total unrealised gains at 31 December 2021 Reconciliation of movements in unrealised gains Unrealised gains at 1 January 2021 In respect to disposals in the year Net gains (losses) arising on revaluation in the year Total unrealisedgains at 31 December 2021	5,301,536	3,767,042
	5,301,536	3,767,042
	3,767,042 (398,117) 1,932,207	3,608,815 (192,342) 350,973
	5,301,536	3,767,042

19 Ultimate control

The charity, which is constituted as a trust, was controlled throughout the period by the Order of Friars Minor by virtue of the fact that the Superior of the Province has the power to appoint the trustees.

20 Connected charities

The Order of Friars Minor Charitable Trust is connected to one other charity by virtue of the fact that the trustees of the Order have the power to appoint trustees of the connected charity and the charities use the same principal address.

The connected charity is:

Name Commissariat of the Holy Land	Charity RegNo 263616	Charitable objectives
		The support of the work of the Custody of the Holy Land, the advancement of the Roman Catholic religion and the relief of poverty.

21 Related party transactions

Other than as disclosed in note 9, there were no further related party transactions (2020 - none).

22 Operating lease commitments

At 31 December 2021, the charity had the following future minimum commitments in respect of non-cancellable operating leases:

	Motor Vehicles	Motor Vehicles
	2021 £	2020 £
Payments due in less than oneyear	—	348

The Order of Friars Minor Charitable Trust

Notes to the accounts 31 December 2021

23 Contingent liability

The trustees have been notified of potential claims in respect to the care and welfare of children in the care of the charity during and after the 1960’s. The amounts involved, if any, cannot be quantified at the current time.

24 Post balance sheet events

The charity is in the final stages of negotiating the purchase of a property in Birmingham at an estimated cost of £500,000. The trustees have set aside this amount as a designated fund (see note 16).

The Order of Friars Minor Charitable Trust

Annual Report and Accounts

Contents

Reports

Reference and administrative details of the charity, its trustees and advisers

INTRODUCTION

CONSTITUTION

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES

Pastoral

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Educational

Overseas missions

Grant making policy

Investment policy

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Investment policy (continued)

Review of the year

Pastoral work

Throughout the year there were no friars in initial formation.

Overseas missions

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Promotion of vocation

OFS spiritual assistance

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

OFS spiritual assistance (continued)

Vigilance with regard to the care of children and vulnerable persons and relevant training

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Guardians’ Report 2021

Glasgow

Clevedon

Stratford

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Guardians’ Report 2021 (continued)

Stratford (continued)

Woodford

Cordate Community/OFM Birmingham

Background: Pre-Covid

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Cordate Community/OFM Birmingham (continued)

Background: Pre-Covid (continued)

Covid and Post-Covid

OFM Birmingham (from June 2021)

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Mission Statement in Birmingham

FUTURE PLANS

FINANCIAL REVIEW

Investment performance

Income and expenditure

FINANCIAL REVIEW (continued)

Income and expenditure (continued)

Financial position and reserves policy

FINANCIAL REVIEW (continued)

Financial position and reserves policy (continued)

GOVERNANCE, STRUCTURE AND MANAGEMENT

Governance

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Governance (continued)

Reverend Michael Copps OFM

Reverend Patrick Lonsdale OFM

Reverend Antony Jukes OFM

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Governance (continued)

Reverend Edmund Highton OFM

Reverend Michael O’Grady OFM

Structure and management

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Key management personnel

Working with other organisations

Trustees’ responsibilities statement

Key management personnel

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Risk management

Trustees’ report 31 December 2021

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Risk management (continued)

Fundraising statement

MEMBERS OF THE ORDER

Independent auditor’s report to the members of The Order of Friars Minor Charitable Trust

Opinion

Basis for opinion